Iridium Communications (0JDO.L) Q4 2024 Earnings Report

Iridium Communications reported solid top-line growth and strong cash generation in QQ4 2024, underpinned by a high gross margin and meaningful free cash flow. Revenue reached $212.991 million, a 9.37% year-over-year increase and a modest 0.10% quarter-over-quarter uptick, while gross profit rose to $152.78 million for a gross margin of approximately 71.7%. EBITDA stood at $104.39 million with an EBITDA margin near 49.0%, and operating income was $52.12 million (operating margin ≈ 24.5%). Net income of $36.34 million yielded an earnings per share (EPS) of $0.32, up modestly on a YoY basis and delivering a QoQ acceleration in EPS of roughly 52.4%. The company generated $104.79 million of operating cash flow and reported free cash flow of $80.52 million, supported by disciplined capital expenditure of $24.27 million. Cash balances stood at $93.5 million at period end, while total debt remained elevated at about $1.79 billion and net debt about $1.70 billion, reflecting a leveraged capital structure typical for a satellite business with sizable network investments. In conjunction with significant share repurchases totaling $123.12 million during the period, Iridium reaffirmed a capital allocation approach prioritizing shareholder value alongside deleveraging potential via robust free cash flow. The balance sheet shows total assets of roughly $2.67 billion, with liabilities around $2.10 billion and stockholders’ equity of about $576.6 million. Market positioning and forward-looking trajectory hinge on the company’s ability to convert cash flow into debt reduction while expanding service offerings—especially in IoT, hosted data services, and government/defense applications. Given the lack of formal guidance in the QQ4 2024 materials, the near-term outlook appears contingent on contract wins, efficiency gains, and competitive dynamics in the satellite communications sector.